The document summarizes the national policy context around public service mutuals in the UK. It defines public service mutuals as organizations that have spun out of the public sector and continue delivering public services with a high degree of employee control. The coalition government is committed to increasing diversity of providers, including mutuals, to support objectives like greater value and innovation. Support programs provide information, advice, and professional services to help emerging mutuals. A growing number of mutuals have been established across various sectors like social care and fire services. Future work aims to further support mutuals through targeted campaigns, finance access, and raising local authority awareness.

1. Public Service Mutuals: the national context
Natasha Price
Mutuals Team, Cabinet Office
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2. National policy context: The Coalition programme for Government made a clear
commitment to open public services to a variety of providers, including mutuals .
The Government defines a public service mutuals as:
An organisation that has spun out of the public sector,
and
…continues to deliver public services
How do we define
How do we define and
aa public service
public service
mutual?
… involves a high degree of employee control.
mutual?
When considering public service mutuals there are a wide variety of types of provider and hence of
business model. These can include for-profits, not-for-profits, charities, social enterprises,
community interest companies.
The Open Public Services White paper makes The Localism Act shifts power from central
a clear commitment to increase diversity of government back into the hands of
provision to help support the Governments individuals, communities and councils.
key strategic objectives: greater value for
money; better, more innovative services and It creates a new set of rights for communities.
The Policy Context
The Policy Context transferring power from the State to the These rights will put community, voluntary
individual: and charity groups - including public sector
employees - first in line when it comes to
running public services
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3. Public service mutuals can deliver multiple benefits
“The case for public service mutuals is aasimple one. Mutualisation can transform the delivery of public services. Mutuals can
“The case for public service mutuals is simple one. Mutualisation can transform the delivery of public services. Mutuals can
deliver substantial benefits to aawide range of public service stakeholders: service users; service commissioners; service
deliver substantial benefits to wide range of public service stakeholders: service users; service commissioners; service
employees; and, the communities they serve.” The Mutuals Taskforce (independent)*
employees; and, the communities they serve.” The Mutuals Taskforce (independent)*
Productivity in mutuals tends to be higher. For example, Central Surrey
Public Service Mutual – evidence Health made 41% productivity gains – creating 76 more treatment slots
for patients per week
demonstrates that greater
employee ownership and control
drives:
In Central Surrey Health 98% of co-owners say they go beyond what is
normally required. The industry norm is 84%
• Increased productivity
• Increased motivation
Central Essex Community Services - following a staff proposal - is funding a pilot
using iPads to give patients requiring speech and language therapy their
• Increased innovation interventions remotely and save them travelling to clinics.
• Increased employee wellbeing
Employee wellbeing tends to be higher in mutuals. Absenteeism is often
lower, for example Sandwell Community Caring Trust saw absenteeism fall
from 22% to less than 1% over a 10 year period
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4. A growing number of mutuals are being created across the country – with a wide
geographical spread
Established mutuals in Established mutuals in
England, 2010 England, 2012
Map of Geographical Spread of
Established Public Service Mutuals
2010-2012
The map provides an indication of the
geographical location of these projects
We are continuing to build our
understanding of ongoing and completed
projects across the public sector. We
published an emerging pipeline of
projected on 25th June
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5. Mutuals are becoming established and being developed in an increasingly wide
range of sectors and service areas
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6. Support is being provided for emerging and established mutuals. The Mutuals
Support Programme has 3 elements:
We’ve seen over 700 people every week accessing information from our website and 91 organisations have
We’ve seen over 700 people every week accessing information from our website and 91 organisations have
accessed the one-to-one support provided by the Mutuals Information Service
accessed the one-to-one support provided by the Mutuals Information Service
Mutuals
Mutuals Managed by Cabinet Office, this will provide initial information, generic
Information
Information advice on key issues , case studies, opportunities for peer support and
Service: online
Service: online knowledge sharing. http://mutuals.cabinetoffice.gov.uk
resource
resource
Delivered by a consortium of industry experts, led by PA Consulting, the
Mutuals
Mutuals hotline will provide information, sign-posting and case management for
Information
Information existing or potential Mutuals, and refer cases for support to the Mutuals
Service: Hotline
Service: Hotline Support Programme 0845 5390 543
Mutuals Support
Mutuals Support Taking referrals from the Mutuals Information Service, the Cabinet Office
Programme:
Programme: will contract for professional services (e.g. tax, legal, HR or business
Professional
Professional advice) to assist fledgling mutuals with the greatest promise
support services
support services http://mutuals.cabinetoffice.gov.uk
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7. A healthy pipeline of mutuals is being developed – both across the country and across
a wide range of sectors and service areas
Map of Geographical Spread of Enquiries
to the Mutuals Information Service
Enquiries to the Mutuals Information
Service by Service Area
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8. What’s next?
We have clear objectives to achieve our goal of supporting more mutuals to spin out and successfully grow.
We have clear objectives to achieve our goal of supporting more mutuals to spin out and successfully grow.
Some of the more focussed work we are underway with includes:
Some of the more focussed work we are underway with includes:
We will be driving our 4 targeted campaigns: We know that Mutuals need access to finance both at
1. Across Local Government; the pre and post spin-out stages and in a variety of
2. Adult & Children Social care; different forms.
3. Probation; and
4. Fire Services We will be working with spin-outs, finance providers
and others to identify where further support and
advice is needed
We will be further expanding our direct support from We will shortly announce the appointment of Mutuals
the MSP and MIS to include more early stage support Ambassadors, helping mutuals with:
including more 1-many group support. 1. Troubleshooting
2. Commercial Expertise
We are currently in pre-procurement stage with this 3. Advocacy and promotion
and market-testing to establish what this offer would 4. Widening our reach with new mutuals
be.
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9. To encourage the creation of new mutuals in local authority services we aim to:
Raise awareness
Raise awareness • Through LA networks, events and partner organisations
• Series of regional ‘roadshows’
• Identify and engage with interested local authorities
Engage and facilitate
Engage and facilitate
collaboration
collaboration
• Establish collaborative peer to peer LA networks
• New information, advice and guidance for commissioners
Support
Support
commissioners
commissioners
• Establish a LA Mutuals Development Group to guide the agenda
Cabinet Office is keen to hear directly from local authorities - employees, commissioners, senior
decision makers, elected members – interested in exploring these opportunities Please contact us
directly at: mutualsteamcorrespondence@cabinet-office.gsi.gov.uk
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